SHF (US:SHFS)2024-04-01 21:47Financial Data and Key Metrics Changes - For the full year 2023, total revenue increased by 85.3% to $17.56 million, up from $9.48 million in 2022 [13][18] - Total loan interest income for 2023 was $2.97 million, representing a 163% increase from $1.13 million in 2022 [7][18] - Investment income increased by 176% to $5.84 million in 2023, compared to $2.1 million in 2022 [18][36] - Operating expenses for the fourth quarter of 2023 decreased by approximately 17% to $6.2 million, compared to $7.4 million in the same period last year [19] - The company reported a net income of $2.5 million in the fourth quarter of 2023, compared to a loss of $37 million in the prior year period [21] Business Line Data and Key Metrics Changes - Deposits activity and onboarding income increased by 42% to $8.6 million in 2023, up from $6.1 million in 2022 [18][52] - The average monthly fee revenue per account increased by 35% year-over-year to $8,298, up from $6,154 for the same period in 2022 [27] - The loan book size increased to $55.66 million at the end of December 31, 2023, compared to $18.9 million at the end of December 31, 2022, representing a 194% increase year-over-year [34] Market Data and Key Metrics Changes - The total number of clients decreased from 1,040 as of March 30, 2023, to 721 as of December 31, 2023, due to the termination of a partnership with Central Bank [25] - The company facilitated approximately $4.2 billion in deposits in 2023, representing an increase of approximately 16.67% compared to $3.6 billion in 2022 [51] Company Strategy and Development Direction - The company aims to strengthen its fintech platform with more sophisticated products and services to create additional revenue channels and improved margins [38] - Safe Harbor is focused on diversifying its income streams, which has allowed it to remain competitive in the cannabis banking sector [30][31] - The company is actively engaged with potential new financial partners eager to enter the high-growth cannabis banking industry [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in 2024 and beyond, citing potential regulatory changes such as the Safer Banking Act [9] - The company believes its expertise in compliance management will set it apart as the cannabis industry expands [9] - Management highlighted the importance of maintaining rigorous compliance standards despite regulatory changes [39] Other Important Information - The company reported cash and cash equivalents of $4.9 million as of December 31, 2023, down from $8.4 million at the end of 2022 [40] - The net working capital deficit improved to $135,000 from $39.3 million at the end of 2022 [42] Q&A Session Summary - No specific questions were recorded during the Q&A session, and the call concluded with management expressing gratitude for the participants' interest in Safe Harbor Financial [10][16]